Private sector oil and gas company Essar Oil has reported its highest-ever quarterly net profit of Rs.1,063 crore in the just-concluded quarter, 54 per cent higher than the Rs.691-crore the company reported in the same period last year.
The refiner’s gross refining margin (the difference between the cost of crude and price of refined products) stood at a record $11.05, against $9.04 in the year-ago period.
However, the company reported 25 per cent lower revenue – from Rs.27,317 crore in Q1FY15 to Rs.20,572 crore in Q1FY16 – mainly because of lower global crude oil prices, the company said at a press meeting here on Wednesday.
Ruia-promoted Essar Oil has signed a preliminary agreement with Russian oil and gas major for 49 per cent stake in the company.
The company has also received all statutory approvals to delist its shares from the stock exchanges. LK Gupta, MD and CEO, said the delisting would be complete within two months.
Essar’s flagship Vadinar refinery in Gujarat refined 5.17 million tonnes of crude oil in the quarter, against 5.14 mt in the year-ago period.
Given that diesel prices have now been deregulated, the company has renewed its focus on retailing petroleum products. It currently has 1,550 operational retail outlets, of which 51 new ones were commissioned this quarter. Essar plans to expand this with another 1,600 outlets within the next 12 months, especially in tier-II cities.
The new outlets will copy the current dealer-owned, dealer-operated model. Retail sales in the quarter accounted for nine per cent of Essar’s revenues, against two per cent in the year-ago period.
The company is also focussing on selling more in India, with revenue from domestic sales increasing from 56 per cent in the year-ago period to 65 per cent now. Exports fell proportionately.
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